The Financial Conduct Authority’s “cautious” approach towards pension dashboards is a “huge let-down” for customers, AJ Bell head of public policy, Rachel Vahey, has argued.
The FCA published its pension dashboard rules yesterday (November 7), setting out what firms must follow when designing and operating a commercial pensions dashboard.
While Vahey described this statement as “helpful” she added that it leaves the pensions industry with only a set of rules and no definitive timescale for when commercial dashboards will become a reality.
“Setting a clear date for commercial dashboards would allow providers to start planning in earnest,” she explained.
“The development of dashboards has already been a bumpy ride with numerous stops and starts, and changes in who is responsible for getting it over the starting line.”
Vahey also described this omission as a “huge let-down” for customers, arguing that dashboards have the potential to empower pension savers but, instead of a single government outlet, they need to be offered by a wide variety of organisations.
She said this would make sure as many people as possible can connect with their lost pension.
“Setting in stone a date for commercial dashboards will offer a clean path forward, allowing millions of people to view all their pensions in one place simply, easily, and quickly,” she added.
“The pensions environment is continually evolving and the FCA should regularly review these rules so they are suitable for tomorrow’s world when targeted support is expected to play a much more important role.
“The FCA has adopted a cautious approach, but this could come at the cost of simplicity and practical help.
“Parts of the consumer journey are still laborious, and not designed from the customer’s perspective.”
Last month (October 21), the pensions minister set out how a government-backed dashboard would go live before commercial versions to test consumer behaviour and protection.
Emma Reynolds announced the MoneyHelper dashboard will be made publicly available before commercial dashboards are launched.
An FCA spokesperson said: “Under legislation it’s for the government to set the date that commercial dashboards will be launched. Publishing our rules supports firms’ ability to prepare and be ready when that date is confirmed”.
tom.dunstan@ft.com
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